India’s space agency, ISRO, launched a record number of 104 satellites into space over the course of 18 minutes on Feb 15, 2017; nearly tripling the previous record for single-day satellite launch. This has propelled the country as a key player in a growing commercial market for space-based surveillance and communication.
Certainly, there were many odds loaded against the Indian Martian entry including the budget. Missions like the Mars Orbital Mission (MOM) that happened in 2014 happened at a cost lower than what it took Hollywood to make the movie Gravity!
And yes, before India proved its caliber with the record launch of satellites along with some of its other recent space missions, not many, including a lot of Indians took ISRO seriously. Is there a lesson that India’s other industries such as the homegrown IT startups that are fighting a similar battle against global giants have to reveal? Maybe, there is.
India has become the world’s largest sourcing destination for the information technology (IT) industry, accounting for approximately 67% of the US$ 124-130 billion market. The industry employs about 10 million workforce. Buoyed by the emerging digital business strategies that Indian firms are fast adopting, the country’s software revenue is set to reach $5.8 billion in 2017 — a 12.8 per cent increase from 2016.
Figure 1: The Indian IT sector – Employment Statistics
The continual growth and prosperity of India’s IT industry depends on some crucial factors such as:
1. Frugal Innovation Guarantee
The cost of skilled Indian workforce is reasonably low compared to the developed nations. This implies that outsourcing to India helps the companies in saving more than half of their operating costs without compromising on quality.
The Indian IT services is highly cost efficient and this is also the reason as to why the IT enabled services like Business Process Outsourcing (BPO) and Knowledge Process Outsourcing (KPO) have expanded significantly in the Indian job market.
2. Technologically Updated Working Methodologies
India has a large pool of educated, trained and technically skilled manpower. The country’s IT industry follows methodologies that are driven by most advanced technologies and infrastructure. Thus, the quality of outputs is enhanced and all the processes are executed immaculately.
3. Time Zone Advantages
The time zone advantages between India and countries in the U.S and U.K has proved to be another important factor why companies outsource to India. This means that there is better coordination between the onsite and offsite team; leading to effective utilization of time.
4. Largest Technical and Professional Talent Pool in the world
The country has a population of over 1.3 billion people and around 4 million graduates are added to the workforce each year. India also holds the distinction of being the largest English speaking nation in the world, after the US.
5. Stable Polity with Clear IT Policies
India has been witnessing new political maturity with large but stable coalitions that have continued the market-friendly reforms introduced in 1991. The IT and ITeS sectors have been the biggest beneficiary of these policies.
The government has also relaxed the red tapism by introducing single window clearances for setting up IT projects and firms. India also has a nodal association of the IT companies called NASSCOM to provide a blue print of the needs and progress path of IT vendors and companies in India.
6. Attractive Tax and Non-tax Incentives for IT Companies
The Central Government has provided many tax and other incentives to boost investment in the IT outsourcing industry in India.
Some of the benefits accruing to IT firms include IT firms setting up venture in notified IT parks and Special Economic Zones (SEZ), tax incentives on exports as tax is deducted on profit for exporters setting units on SEZs, Electronic Processing Zones (EPZ), Software Technology Parks (STP).
Figure 2: Indian IT exports statistics
Today, many MNCs have a greater focus on the Indian IT outsourcing and software development market. A large number of companies are outsourcing their software development to Indian companies, while others are establishing a presence in India and participating actively in the software export arena.
Though India’s software services sector is bracing for the consequences of new US President Donald Trump’s action against outsourcing of jobs, there are reasons strong enough with great exemplary performance demonstrated by, once considered an underdog, the Indian Space Research Organization, ISRO to strongly believe that India’s IT innovation will fuel growth with new opportunities in the years ahead.
Figure 3: Double digit growth of Indian IT industry
Some facts that will justify these are:
- India becoming a global digital hub and the country continues to gain market share in the global sourcing arena.
- Despite sluggish growth in global IT industries, indigenous IT industry continues to grow in double digits.
- Young entrepreneurs and Start-ups redefining India’ innovation capabilities.
- Domestic market growth is steady, accelerated implementation of announced initiatives will fast track growth.
In short, the Indian IT industry is poised to become the major driving force in providing innovative technology solutions to the global IT market!
Interested in outsourcing your projects to India? We are ready to work with you….